1.This PPT covers Definition of CCost Acccountng, . Scope of cost accounting, Advantages, Limitations of cost accounting, differences between Financial Accounting and Cost Accounting.
COST ACCOUNTING Cost accounting is a process of collecting, recording, classifying, analyzing, summarizing, allocating and evaluating various alternative courses of action & control of costs.
Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability.
Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.
Definitions Cost accounting is the process of determining and accumulating the cost of product or activity.
It is defined as, 'the establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds.
Objectives of Cost AccountingTo control cost by using various techniques such as budgetary control, standard costing, and inventory control
To provide information for decision making and planning to formulate operative procedures
To help in directing and controlling operations
To ascertain costing profit
motivate to achieve the organization's goals
Scope of Cost Accounting Cost book-keeping
It involves maintaining complete record of all costs incurred from their incurrence to their charge to departments, products and services. Such recording is preferably done on the basis of double entry system.
Cost System
Proper accounting for costs requires systems and procedures.
Cost Ascertainment
Cost ascertainment forms the basis of managerial decision making for planning and control.
Cost Analysis
It involves the process of finding out the causal factors of actual costs varying from the budgeted costs and fixation of responsibility for cost increases.
Cost Comparisons
Cost accounting also includes comparisons between cost from alternative courses of action over a period of time.
Cost Control
Cost accounting is the utilization of cost information for exercising control. It involves a detailed examination of each cost in the light of benefit derived from the incurrence of the cost.
Cost Reports
The ultimate function of cost accounting is the presentation of reports. These reports are primarily for use by the management at different levels. Cost reports form the basis for planning and control, performance appraisal and managerial decision making.
Importance of Cost Accounting1. To Management
• Helps in ascertainment of cost of process, product, activity, by using different techniques such as job costing and process costing..
• Aids in price fixation by using demand and supply, activities of competitors, market condition to a great extent, also determine the price of product and cost to the producer does play an important role. The producer can take necessary help from costing records.
Helps in cost reduction by applying cost reduction pro gramme and improved methods are tried to reduce costs.
Elimination of wastage by checking the forms of waste, such as time and expenses et
1.1 identify the type of accounting
1.2 difference between Cost Accounting , Cost Accountancy and Costing
1.3 understand the Management information needs
1.4 identify the objectives of cost accounting
1.5 difference between Cost Accounting Vs. Financial Accounting
1.6 identify the role of cost accountant
COSTING means recording of all the costs incurred in a business in a way that can be used to improve its management. this is useful or commerce students and professional. BCOM, CA,CMA,CS
COST ACCOUNTING Cost accounting is a process of collecting, recording, classifying, analyzing, summarizing, allocating and evaluating various alternative courses of action & control of costs.
Its goal is to advise the management on the most appropriate course of action based on the cost efficiency and capability.
Cost accounting provides the detailed cost information that management needs to control current operations and plan for the future.
Definitions Cost accounting is the process of determining and accumulating the cost of product or activity.
It is defined as, 'the establishment of budgets, standard costs and actual costs of operations, processes, activities or products and the analysis of variances, profitability or the social use of funds.
Objectives of Cost AccountingTo control cost by using various techniques such as budgetary control, standard costing, and inventory control
To provide information for decision making and planning to formulate operative procedures
To help in directing and controlling operations
To ascertain costing profit
motivate to achieve the organization's goals
Scope of Cost Accounting Cost book-keeping
It involves maintaining complete record of all costs incurred from their incurrence to their charge to departments, products and services. Such recording is preferably done on the basis of double entry system.
Cost System
Proper accounting for costs requires systems and procedures.
Cost Ascertainment
Cost ascertainment forms the basis of managerial decision making for planning and control.
Cost Analysis
It involves the process of finding out the causal factors of actual costs varying from the budgeted costs and fixation of responsibility for cost increases.
Cost Comparisons
Cost accounting also includes comparisons between cost from alternative courses of action over a period of time.
Cost Control
Cost accounting is the utilization of cost information for exercising control. It involves a detailed examination of each cost in the light of benefit derived from the incurrence of the cost.
Cost Reports
The ultimate function of cost accounting is the presentation of reports. These reports are primarily for use by the management at different levels. Cost reports form the basis for planning and control, performance appraisal and managerial decision making.
Importance of Cost Accounting1. To Management
• Helps in ascertainment of cost of process, product, activity, by using different techniques such as job costing and process costing..
• Aids in price fixation by using demand and supply, activities of competitors, market condition to a great extent, also determine the price of product and cost to the producer does play an important role. The producer can take necessary help from costing records.
Helps in cost reduction by applying cost reduction pro gramme and improved methods are tried to reduce costs.
Elimination of wastage by checking the forms of waste, such as time and expenses et
1.1 identify the type of accounting
1.2 difference between Cost Accounting , Cost Accountancy and Costing
1.3 understand the Management information needs
1.4 identify the objectives of cost accounting
1.5 difference between Cost Accounting Vs. Financial Accounting
1.6 identify the role of cost accountant
COSTING means recording of all the costs incurred in a business in a way that can be used to improve its management. this is useful or commerce students and professional. BCOM, CA,CMA,CS
Eco 10 ,B COM, IGNOU-Elements of costing
ALL SO USEFUL FOR CA CMA, CS ,B COM, BBA. MBA
IGNOU BCOM ECO-10 (Elements of Costing) Study Material –Dear Learners, The full downloadable free study materials of ECO-10 (Elements of Costing) are listed below to facilitate your studies for securing good marks in upcoming term end examinations. Though, your performance in examination will mostly depend on your efforts only. Even though, I can assure you that the following study materials will proof to be cabalistic in your efforts.
Block- 1 Basic Concepts
Unit-1 Nature and Scope
Unit-2 Concept of Cost and Its Ascertainment
Block- 2 Materials and Labour
Unit-3 Procurement, Storage and Issue
Unit-4 Inventory Control
Unit-5 Pricing the Issue of Materials
Unit-6 Labour
Block- 3 Overheads
Unit-7 Classification and Distribution of Overheads
Unit-8 Absorption of Factory Overheads
Unit-9 Treatment of Other Overheads
Block-4 Methods of Costing
Unit-10 Unit Costing
Unit-11 Reconciliation of Cost Financial Accounts
Unit-12 Job and Contract Costing
Unit-13 Process Costing
1. Cost Accountancy
2. Cost Accounting
2.1 Definition of Cost Accounting2.2 Objectives of Cost Accounting2.3 Importance of Cost Accounting2.4 Advantages of Cost Accounting2.5 Limitations of Cost Accounting2.6 Reports Generated by Cost Accounting Department
3. Installation of Cost Accounting System
3.1 Basic Considerations3.2 Steps in Introduction3.3 Essentials of a Good Cost Accounting System 3.4 Difficulties in Introduction
Introduction of costing , its elements & cost sheetKamlesh Shinde
Basically presentation is based on the costing , its various elements, their classification and the illustration on a simple cost sheet and Estimated Cost sheet. It is very useful to beginners in cost accounting , B.Com and M.com Students.
Business Ethics is a form of Applied Ethics. It originates from individuals, organizational
statements or from the legal system. It can be said to be the attitude, culture and manner of doing
business by the business community. Decision Making: It is our means of deciding a course of action. Without it our actions would be random and aimless.
Leadership: The conscious effort to adopt, integrate, and emulate the other 11 principles to guide decisions and behavior in all aspects of professional and personal life.
Accountability: Holding yourself and others responsible for their actions. Commitment to following ethical practices and ensuring others follow ethics guidelines.
Integrity: Incorporates other principles—honesty, trustworthiness, and reliability. Someone with integrity consistently does the right thing and strives to hold themselves to a higher standard.
Respect for others: To foster ethical behavior and environments in the workplace, respecting others is a critical component. Everyone deserves dignity, privacy, equality, opportunity, compassion, and empathy.
Honesty: Truth in all matters is key to fostering an ethical climate. Partial truths, omissions, and under or overstating don't help a business improve its performance. Bad news should be communicated and received in the same manner as good news so that solutions can be developed.
Economic Order Quantity (EOQ) is the order quantity that minimizes total inventory costs. Total Inventory Costs Budgetary techniques for inventory planning
2. A-B-C. System of inventory control
3. Economic Order Quantity (E.O.Q.) i.e., how much to purchase at one time economically
4. VED Analysis
5. Perpetual inventory system and the system of store verification
6. Fixation of Stock Level
7. Control Ratios
Eco 10 ,B COM, IGNOU-Elements of costing
ALL SO USEFUL FOR CA CMA, CS ,B COM, BBA. MBA
IGNOU BCOM ECO-10 (Elements of Costing) Study Material –Dear Learners, The full downloadable free study materials of ECO-10 (Elements of Costing) are listed below to facilitate your studies for securing good marks in upcoming term end examinations. Though, your performance in examination will mostly depend on your efforts only. Even though, I can assure you that the following study materials will proof to be cabalistic in your efforts.
Block- 1 Basic Concepts
Unit-1 Nature and Scope
Unit-2 Concept of Cost and Its Ascertainment
Block- 2 Materials and Labour
Unit-3 Procurement, Storage and Issue
Unit-4 Inventory Control
Unit-5 Pricing the Issue of Materials
Unit-6 Labour
Block- 3 Overheads
Unit-7 Classification and Distribution of Overheads
Unit-8 Absorption of Factory Overheads
Unit-9 Treatment of Other Overheads
Block-4 Methods of Costing
Unit-10 Unit Costing
Unit-11 Reconciliation of Cost Financial Accounts
Unit-12 Job and Contract Costing
Unit-13 Process Costing
1. Cost Accountancy
2. Cost Accounting
2.1 Definition of Cost Accounting2.2 Objectives of Cost Accounting2.3 Importance of Cost Accounting2.4 Advantages of Cost Accounting2.5 Limitations of Cost Accounting2.6 Reports Generated by Cost Accounting Department
3. Installation of Cost Accounting System
3.1 Basic Considerations3.2 Steps in Introduction3.3 Essentials of a Good Cost Accounting System 3.4 Difficulties in Introduction
Introduction of costing , its elements & cost sheetKamlesh Shinde
Basically presentation is based on the costing , its various elements, their classification and the illustration on a simple cost sheet and Estimated Cost sheet. It is very useful to beginners in cost accounting , B.Com and M.com Students.
Business Ethics is a form of Applied Ethics. It originates from individuals, organizational
statements or from the legal system. It can be said to be the attitude, culture and manner of doing
business by the business community. Decision Making: It is our means of deciding a course of action. Without it our actions would be random and aimless.
Leadership: The conscious effort to adopt, integrate, and emulate the other 11 principles to guide decisions and behavior in all aspects of professional and personal life.
Accountability: Holding yourself and others responsible for their actions. Commitment to following ethical practices and ensuring others follow ethics guidelines.
Integrity: Incorporates other principles—honesty, trustworthiness, and reliability. Someone with integrity consistently does the right thing and strives to hold themselves to a higher standard.
Respect for others: To foster ethical behavior and environments in the workplace, respecting others is a critical component. Everyone deserves dignity, privacy, equality, opportunity, compassion, and empathy.
Honesty: Truth in all matters is key to fostering an ethical climate. Partial truths, omissions, and under or overstating don't help a business improve its performance. Bad news should be communicated and received in the same manner as good news so that solutions can be developed.
Economic Order Quantity (EOQ) is the order quantity that minimizes total inventory costs. Total Inventory Costs Budgetary techniques for inventory planning
2. A-B-C. System of inventory control
3. Economic Order Quantity (E.O.Q.) i.e., how much to purchase at one time economically
4. VED Analysis
5. Perpetual inventory system and the system of store verification
6. Fixation of Stock Level
7. Control Ratios
OPERATIONS RESEARCH
TRANSPORTATION PROBLEM
LEAST COST METHOD
method used to obtain the initial feasible solution for the transportation problem
Method: Least Cost Method (LCM)
The least cost method is more economical than north-west corner rule,since it starts with a lower beginning cost. Various steps involved in this method are summarized as under.
Step 1: Find the cell with the least(minimum) cost in the transportation table.
Step 2: Allocate the maximum feasible quantity to this cell.
Step:3: Eliminate the row or column where an allocation is made.
he physical arrangement of production facilities. It is the configuration of departments, work centers and equipment in the conversion process. It is a floor plan of the physical facilities, which are used in production.
refers to the choice of region and the selection of a particular site for setting up a business or factory. An ideal location is on where the cost of the product is kept to minimum, with a large market share, the least risk and the maximum social gain
The most efficient way to produce finished goods with the lead times needed to meet production demand.
a predetermined process which includes the use of human resource, raw materials, machines etc
A business methodology for quality improvement that measures how many defects there are in a current process and seeks to systematically eliminate
The key sigma principles are the following:
Customer focus
Use data
Improve continuously
Involve people
Be thorough
Total Quality Management (TQM) is a management approach that seeks to provide long-term success by providing unparalleled customer satisfaction through the constant delivery of quality IT services. To properly execute on TQM methods, the entire organization needs to operate as a single unit in the pursuit of excellence
The Indian economy is classified into different sectors to simplify the analysis and understanding of economic activities. For Class 10, it's essential to grasp the sectors of the Indian economy, understand their characteristics, and recognize their importance. This guide will provide detailed notes on the Sectors of the Indian Economy Class 10, using specific long-tail keywords to enhance comprehension.
For more information, visit-www.vavaclasses.com
We all have good and bad thoughts from time to time and situation to situation. We are bombarded daily with spiraling thoughts(both negative and positive) creating all-consuming feel , making us difficult to manage with associated suffering. Good thoughts are like our Mob Signal (Positive thought) amidst noise(negative thought) in the atmosphere. Negative thoughts like noise outweigh positive thoughts. These thoughts often create unwanted confusion, trouble, stress and frustration in our mind as well as chaos in our physical world. Negative thoughts are also known as “distorted thinking”.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
The Art Pastor's Guide to Sabbath | Steve ThomasonSteve Thomason
What is the purpose of the Sabbath Law in the Torah. It is interesting to compare how the context of the law shifts from Exodus to Deuteronomy. Who gets to rest, and why?
Model Attribute Check Company Auto PropertyCeline George
In Odoo, the multi-company feature allows you to manage multiple companies within a single Odoo database instance. Each company can have its own configurations while still sharing common resources such as products, customers, and suppliers.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
How to Split Bills in the Odoo 17 POS ModuleCeline George
Bills have a main role in point of sale procedure. It will help to track sales, handling payments and giving receipts to customers. Bill splitting also has an important role in POS. For example, If some friends come together for dinner and if they want to divide the bill then it is possible by POS bill splitting. This slide will show how to split bills in odoo 17 POS.
Students, digital devices and success - Andreas Schleicher - 27 May 2024..pptxEduSkills OECD
Andreas Schleicher presents at the OECD webinar ‘Digital devices in schools: detrimental distraction or secret to success?’ on 27 May 2024. The presentation was based on findings from PISA 2022 results and the webinar helped launch the PISA in Focus ‘Managing screen time: How to protect and equip students against distraction’ https://www.oecd-ilibrary.org/education/managing-screen-time_7c225af4-en and the OECD Education Policy Perspective ‘Students, digital devices and success’ can be found here - https://oe.cd/il/5yV
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2. • Definition:
Cost accounting is the accounting method for ensuring cost-
effectiveness by accumulating, organising, recording, calculating,
analysing and assessing the overall expenses incurred on a product,
process or project, etc. It is mostly used in industrial units or factories
where the goods are manufactured.
3. Advantages of Cost Accounting
• (i) A cost system reveals unprofitable activities, losses or inefficiencies
occurring in any form such as (a) Wastage of man power, idle time
and lost time. (b) Wastage of material in the form of spoilage,
excessive scrap etc., and (c) Wastage of resources, e.g. inadequate
utilization of plant, machinery and other facilities.
• (ii) Cost Accounting locates the exact causes for decrease or increase
in the profit or loss of the business. It identifies the unprofitable
products or product lines so that these may be eliminated or
alternative measures may be taken.
• (iii) Cost Accounts furnish suitable data and information to the
management to serve as guides in making decisions involving
financial considerations.
4. Advantages of Cost Accounting
• (iv) Cost Accounting is useful for price fixation purposes. Although
sale price is generally related more to economic conditions prevailing
in the market than to cost, the latter serves as a guide to test the
adequacy of selling prices.
• (v) With the application of Standard Costing and Budgetary Control
methods, the optimum level of efficiency is set.
• (vi) Cost comparison helps in cost control. Comparison may be period
to period, of the figures in respect of the same unit or factory or of
several units in an industry by employing Uniform Costs and Inter-
Firm Comparison methods. Comparison may be made in respect of
cost of jobs, process or cost centres
5. • (vii) A cost system provides ready figures for use by the Government,
wage tribunals and boards, and labour and trade unions.
• (viii) When a concern is not working to full capacity due to various
reasons such as shortage of demands or bottlenecks in production, the
cost of idle capacity can readily worked out and repealed to the
management.
• (ix) Introduction of a cost reduction programme combined with
operations research and value analysis techniques leads to economy.
• (x) Marginal Costing is employed for suggesting courses of action to be
taken. It is a useful tool for the management for making decisions.
• (xi) Determination of cost centres or responsibility centres to meet the
needs of a Cost Accounting system, ensures that the organizational
structure of the concern has been properly laid responsibility can be
properly defined and fixed on individuals.
• xii) Perpetual inventory system which includes a procedure for
continuous stock taking is an essential feature of a cost system.
• (xiii) The operation of a system of cost audit in the organization
prevents manipulation and fraud and assists in furnishing correct and
reliable cost data to the management as well as to outside parties like
shareholders, the consumers and the Government
6. Limitations of Cost Accounting
Cost accounting is not sufficient alone to control
or reduce the cost of products or services. It is
necessary to use the data so generated to take
corrective actions which require a lot
of experience and expertise.
Moreover, it differs from the financial accounting
we practice in day to day life. To get an accurate
result, a reconciliation statement has to be
prepared.
In the books of accounts, many entries have to be
made twice; once in the final accounts and then
in the cost accounts, which is a tedious process.
Due to the lengthy process of duplicate entries,
there is a need for additional efforts from the
personnel. Thus it increases the labour
charges for the organisation.
It is majorly applicable to the industries, factories
and manufacturing units where some production
function takes place. It is less useful for service
industries.
7. Limitations of Cost Accounting
•Cost accounting and cost accounting systems are expensive to maintain. Such a system
requires resources for analysis, allocation, absorption and apportionment of cost and cost
factors. Not all companies (businesses) can manage the cost (resources) involved in cost
accounting.
•Cost accounting is based on estimation. Companies assign various costs to the products
and processes on the basis of some estimation. Such assignments are dependent on
various factors i.e. availability of raw-resources, quantity of production, use of material,
scarce resources etc. As the basic premise of cost accounting is based on estimation or
variability, the reliability of this accounting system is low.
•Different organizations follow different procedures of calculating cost in cost
accounting. There is no uniformity in the procedure. For instance, some companies may
use marginal costing, some may use standard costing or some companies may use
historical or uniform costing. All these differences weaken the uniformity of cost
8. Scope of Cost Accounting
Cost accounting is being widely applied by the production units to modify the
process and maximise the profit.
Following are the various applicabilities of the cost accounting techniques:
9. Scope of Cost Accounting cont……
• Cost Analysis: Cost accounting determines the deviation of the actual cost
as compared to the planned expense, along with the reason for such
variation.
• Cost Audit: To verify the cost sheets and ensure the efficient application of
cost accounting principles in the industries, cost audits are done.
• Cost Report: Cost reports are prepared from the data acquired through
cost accounting to be analysed by the management for strategic decision
making.
• Cost Ascertainment: To determine the price of a product or service, it is
essential to know the total cost involved in generating that product or
service.
• Cost Book Keeping: Similar to financial accounting; journal entries, ledger,
balance sheet and profit and loss account is prepared in cost accounting
too. Here, the different cost incurred is debited, and income from the
product or service is credited.
10. • Cost System: It provides for time to time monitoring and evaluation of the
cost incurred in the production of goods and services to generate cost
reports for the management.
• Cost Comparison: It examines the other alternative product line or
activities and the cost involved in it, to seek a better opportunity for
generating high revenue.
• Cost Contol: Sometimes, the actual cost of a product or service becomes
higher than its standard cost. To eliminate the difference and control the
actual cost, cost accounting is required.
• Cost Computation: When the company is engaged in the production of
bulk units of a particular product or commodity, the actual per-unit cost is
derived through cost accounting.
• Cost Reduction: It acts as a tool in the hands of management to find out if
there is any scope of reducing the standard cost involved in the production
of goods and services. Its purpose is to obtain additional gain
11. Objectives of Cost Accounting
• Cost accounting aims at eliminating the loopholes in the production
process and ensures manufacturing of goods at the lowest possible
cost.
12. Objectives of Cost Accounting
• Control and Reduce Cost: Cost accounting continuously focuses on
managing the cost of production per unit to improve profitability without
compromising with the quality of the product.
• Determine Selling Price: It provides the total cost incurred in the product or
service, which is the base for fixing an appropriate selling price.
• Assist Management in Decision Making: The reports and cost sheets
generated based on cost accounting back the managerial decisions of the
organization.
• Ascertain Closing Inventory: It determines the closing inventory value at the
end of the financial year.
• Ensure Profit from Each Activity: Cost accounting reviews the cost and takes
corrective actions at each level to ensure profitability from all business
activities.
13. Objectives of Cost Accounting
• Budgeting: It generates the estimated cost of products or services to
assist in budget planning, implementation and control.
• Setting Performance Standards: It provides a standard cost of goods or
services to sets a level for the future course of action.
• Business Expansion: It estimates the cost of production at different
stages, based on this analysis, the management can plan for expansion
of the business.
• Minimizing Wastage: Cost control and reduction so attained helps in
reducing the wastage during the manufacturing process.
• Improves Efficiency: Cost accounting assures cost management, profit
appreciation and less wastage which ultimately enhances the overall
production and manufacturing process of products.
14. Difference between Cost Accounting& Financial Accounting
Financial Accounting Cost Accounting
(a) It provides the information about the
business in a general way. i.e Profit and
Loss Account, Balance Sheet of the
business to owners and other outside
partners.
(a) It provides information to the
management for proper planning,
operation, control and decision making
(b) It classifies, records and analyses the
transactions in a subjective manner, i.e
according to the nature of expense
(b) It records the expenditure in an
objective manner, i.e according to the
purpose for which the costs are incurred.
(c) It lays emphasis on recording aspect
without attaching any importance to
control.
(c) It provides a detailed system of
control for materials, labour and
overhead costs with the help of standard
costing and budgetary control.
(d) It reports operating results and
financial position usually at the end of
the year.
(d) It gives information through cost
reports to management as and when
desired(d) It gives information through
cost reports to management as and
when desired
15. Difference between Cost Accounting & Financial Accounting
Financial Accounting Cost Accounting
(e) Financial Accounts are accounts of
the whole business. They are
independent in nature.
(e) Cost Accounting is only a part of the
financial accounts and discloses profit or
loss of each product, job or service.
(f) Financial Accounts records all the
commercial transactions of the business
and include all expenses i.e
Manufacturing, Office, Selling etc.
(f) Cost Accounting relates to
transactions connected with
Manufacturing of goods and services,
means expenses which enter into
production.
(g) Financial Accounts are concerned
with external transactions i.e.
transactions between business concern
and third party.
(g) Financial Accounts are concerned
with external transactions i.e.
transactions between business concern
and third party.
h) Only transactions which can be
measured in monetary terms are
recorded
(h) Non-Monetary information likes No
of Units / Hours etc are used.
(i) Financial Accounting deals with actual
figures and facts only
(i) Cost Accounting deals with partly
facts and figures and partly estimates /
standards.
16. Difference between Cost Accounting & Financial Accounting
Financial Accounting Cost Accounting
(k) Stocks are valued at Cost or Market price
whichever is lower.
(k) Stocks are valued at Cost onlyv
(l) Financial Accounting is a positive science as
it is subject to legal rigidity with regarding to
preparation of financial statement.
(l) Cost Accounting is not only positive science
but also normative because it includes
techniques of budgetary control and standard
costing
m) These accounts are kept in such away to
meet the requirements of Companies Act 2013
as per Sec 128 & Income Tax Act, 1961 Sec
44AA
m) Generally Cost Accounts are kept
voluntarily to meet the requirements of the
management, only in some industries Cost
Accounting records are kept as per the
Companies Act.